Ukraine Opens Ukrenergo’s Reserve Market to Nationwide Cogeneration

Ukraine’s energy regulator has extended access to Ukrenergo’s replacement-reserve mechanism to distributed generation facilities across the entire country, a step expected to ease electricity shortages at grid nodes where supply is under pressure.

Previously, only cogeneration facilities in Kyiv and Kyiv region were eligible to participate in the tertiary-frequency and active-power reserve scheme run by the national transmission operator. A revised temporary procedure — valid for the duration of martial law and for 30 days after it is lifted — removes the geographic restriction entirely. Yurii Vlasenko, head of the National Energy and Utilities Regulatory Commission (NKREKP), announced the change, noting that a plant’s location will no longer determine its eligibility.

To make participation financially viable, Ukrenergo will compensate gas turbine and gas-piston units for the difference between the regulator-determined price and the prevailing spot-market rate. That price support is designed to allow cogeneration plants to operate, provide services to Ukrenergo, and take part in auctions — creating the economic conditions needed to address systemic and balance constraints in the power system.

The decision comes as repeated missile and drone attacks on energy infrastructure continue to strain the grid, while a seasonal increase in electricity consumption adds further pressure. Bringing additional capacity into the reserve pool will give grid dispatchers access to available generation at the nodes where network damage has created the places where it is most needed, the commission said.

Source: UkrMedia News